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Foamex misses $7.3 million interest payment

Company negotiating to restructure debt

Larry Thomas -- Furniture Today, January 23, 2009

MEDIA, Pa. — Polyurethane foam supplier Foamex International said Friday it failed to make a $7.3 million interest payment that was due Jan. 21 and said it is negotiating with its lenders to restructure its debt.

The company also said it hopes to enter into a forbearance agreement with the lenders while the restructuring plan is developed.

The missed interest payment involved the company's first- and second-lien term loans. Foamex said an amendment to the first-lien loan is one of the restructuring options under discussion.

"These actions are consistent with our number one priority over the past two years to deleverage," said Jack Johnson, president and CEO. "Importantly, these steps and our ongoing negotiations should have no affect on Foamex's day-to-day operations."

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Foamex restructuring debt

Feb 2, 2009

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